Pernod: ‘No more buyouts’

Pernod Ricard is not chasing any more buyouts and will rely on Jacob's Creek to help it overtake arch-rival Allied Domecq.

The multinational, which paid US$3.15bn (€3.6bn) for its share of Canadian drinks company Seagram last year, is the third-biggest drinks group in the world.

Diageo, Pernod Ricard’s partner in the purchase of Seagram, is the world’s largest. Allied Domecq is in the number two position – a spot Pernod would like to occupy.

‘We are third, and we have the challenge to become second,’ chairman Patrick Ricard said. ‘The growth will come from our premium brands, which are growing very well.’

Pernod is hoping that Australian brand Jacob’s Creek will provide the impetus for near world domination. The brand, which achieved enviable recognition helped by the slogan ‘Australia’s top drop’, sells 4.5m cases worldwide and is Britain’s top-selling Australian wine.

The company will not chase any more acquisitions in Australia. ‘If we can sell a million more cases of Jacob’s Creek, it’s far better for us than buying a million-case wine company,’ Pernod joint managing director Richard Burrows told Reuters.